Handyman Hardware, a small community-based store, offers its consumers the option of using credit.Creditworthy individuals are able to use the "HH Credit Card" for all purchases up to a credit limit of R1 000.Consumers are required to pay at least 20 per cent of their outstanding balance at the end of each month.A 2 per cent finance charge is assessed on the unpaid balance at the end of each billing cycle.Handyman Hardware is employing ____ in its business.
A)open charge accounts
B)instalment accounts
C)revolving charge accounts
D)selective accounts

Question

Quizplus · Accepted Answer

Handyman Hardware is offering revolving charge accounts, as customers are able to make purchases up to a credit limit and can choose to pay a portion of their outstanding balance each month, which carries over to the next billing cycle with a finance charge assessed on the remaining unpaid balance.

Handyman Hardware, a Small Community-Based Store, Offers Its Consumers the Option